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jbeira
March 25, 2021
Question

How do I apply a settlement discount to an invoice at the time that I receive the payment? There is already a discount given to the invoice at the time of creating it?

  • March 25, 2021
  • 1 reply
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1 reply

M
Mark_R
March 25, 2021

I've got you covered, @jbeira.

 

You can set up invoice terms and turn on the discount feature in your QuickBooks Online (QBO). This way, you can apply a settlement discount to an invoice. Let me guide you through the process.

 

  1. Click the Gear icon, then select Account and Settings.
  2. Go to the Sales menu and choose Sales form content. 
  3. Select your Preferred invoice terms. 
  4. Then, put a checkmark on the Discount checkbox.
  5. Click Save, then Done.

Once done, you can now apply the discount to your customer's invoice. Here's how:

 

  1. Click the + New button, then select Invoice.
  2. Select the customer from the drop-down.
  3. In the Terms drop-down, select the invoice term you created.
  4. Enter the necessary information.
  5. Record the discount amount from the Discount percent or Discount amount field.
  6. Click Save and close.

I'm adding this article for more guidance: Add a discount to an invoice or sales receipt in QuickBooks Online.

 

When you already received the payment, you can record it by going to the + New and selecting  Receive Payment. To learn more about this process, visit this article: Record Invoice Payments. 

 

Please let me know if you need clarification about this, or there's anything else I can do for you. I'll be standing by for your response. Have a great day.

G
graham-hogg
January 10, 2022

Hi QBO Team

 

The solutions offered by your team are not what we are looking for in South Africa.

 

Settlement discount is a discount offered to a customer as an incentive to pay there account on time. It is strictly related to to this and as such all the solutions offered here do not answer the question.

 

When the customer pays for an invoice or multiple invoices on their statement, in South Africa we offer a discount varying typically from 2.5% to 7.5% to ensure that the payment is received on or before their last day of Terms offered. See example below:

 

 On 10 Dec 2021 Customer A buys 100 widgets on Invoice 123 for R 50 (Including VAT) per widget. Total therefore for the invoice would be 100 x 50 = R 5000.00 The customer has 30 days from end of month to pay according to their terms with 2.5% settlement discount. Therefore if the customer pays on or before 31 Jan 2022 they would be entitled to claim 2.5% settlement discount (R 125.00) and they would only pay an amount of R 4875.00 leaving a balance of R 125.00 which now needs a settlement discount to be applied.

 

Currently I have to use a journal to apply a settlement discount to each and every invoice that is paid on time and this is a slow and tedious process that has to be done before sending statements to customers. If a Terms option would be included in the accounts receivable section that allows a percentage to be put in the field that will apply if paid within the specified terms this would solve the problem.

 

Many thanks

Graham Hogg

JoesemM
JoesemM
January 10, 2022

Thanks for joining this thread and providing some feedback, @graham-hogg.

 

Feedback provides clear expectations for current and future performance by strengthening knowledge of what customers like you want in QBO. That said, I'd recommend sending feedback to our Product Development Team.

 

We value your suggestions. This way, it helps our engineers determine what features to be added in QuickBooks.

 

Here’s how to send feedback in QBO:

 

  1. Click the Gear icon.
  2. Choose Feedback.

 

I recommend checking out our Firm of Future site so you're able to keep track of any changes and updates made to the product. 

 

I'd also like to share these articles for additional guidance and reference on how to track payments in QuickBooks: 

 

 

Please let me know in the comment section below if you have other questions or concerns. I'll be around to assist you every step of the way. Thanks for coming by and you have a nice day ahead., @graham-hogg.

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